iiir Massachusetts Institute oftechnology
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1 iiir Massachusetts Institute oftechnology October Mayor E. Denise Simmons Vice Mayor Marc C. McGovem Ordinance Committee Co-Chair Dennis J. Carlone Ordinance Committee Co-Chair Leland Cheung City Councilor Craig A. Kelley City Councilor Jan Devereux City CouncilorTimothy J. Toomey, Jr. City Councilor Nadeem A. Mazen City Councilor David P. Maher Cambridge City Hall 795 Massachusetts Avenue Cambridge, Massachusetts Re: Commitments and conditions accompanying the amended zoning petition (the "PUD-7 Zoning") for PUD-7 District (the "PLlD-7 District") attached hereto as Attachment A Dear Mayor Simmons, Vice Mayor McGovem, Ordinance Committee Co-Chairs Carlone and Cheung and Councilors Kelley, Devereux, Toomey, Mazen and Maher: The purpose ofthis letter is to describe commitments and benefits which the Massachusetts Institute oftechnology ("MIT"') isprepared to offer the City of Cambridge to facilitate and enable MIT to revitalize and redevelop the Volpe Transportation Center Site, excluding the parcel onwhich a new federal building will be constructed (the "Project"), through the construction of new mixed-use buildings, subject to the satisfaction of the "Conditions" set forth below. Capitalized terms used, but not otherwise defined, herein shall have the meanings ascribed to them in Article of the Cityof Cambridge Zoning Ordinance. MIT's Commitments A. Grand Junction Multi-Use Path. Recognizing the importance of establishment of a multi-use path along the Grand Junction corridor, which corridor is identified in the Kendall Square Mobility Task Force Report datedaugust 2017 (the"taskforce Report"), to the City's and region's transportation network and mobility and in an effort to assist the City inits goals ofreducing automobile traffic, MIT agrees that it shall, upon
2 Mlir Massachusetts InstituteofTechnology the passage of thepud-7 Zoning, commence work with the City of Cambridge and other stakeholders and agencies to advance the implementation of such a path. In keeping with the recommendations of the Task Force Report and the findings contained in the Grand Junction Community Path and MIT Property Feasibility Study(October 2014)(the"2014 Study"), and in orderto assistthe City in making a pathoverthe Grand Junction corridor (the "Grand Junction Path") a reality, MIT agrees that: immediately following the adoption of the PUD-7 Zoning, MIT will work with the City to prepare and enter expeditiously into an agreementwith the Citythat shall memorialize a commitment by MITto convey to the City perpetual permanent easements or interests in fee, at the election ofmit, sufficient for the construction of the Grand Junction Path on all portions of the Grand Junction Path to be constructed on land owned and controlledby MIT (the "MIT Property"). The agreement memorializing MIT's commitmentto convey such easements or fee interests to the City shall be (i) consistent with the 2014 Study, including identification of easementareas, (ii) on such terms and conditionsas MIT and the City shall reasonably agree; and (iii) shall provide that MIT must convey all such easements and /or interests in fee to the City by no laterthan thirty(30) days aftercompletion of the design of the Grand Junction Path; immediately following the adoption of the PUD-7 Zoning, MIT shall contribute $500,000 to the City for the development of the design for the Grand Junction Path; and within thirty (30) days of the completion of the design ofthe Grand Junction Path and thecity's receipt of all rights, consents and/or approvals necessary to construct the Grand Junction Path, MIT will, at MIT's option, either (i) deliver to the City $8,000, for the design and construction of the Grand Junction Path or (ii) commenceconstruction of the portion of the Grand Junction Path located on the MIT Property and diligentlypursue such construction to completion. All construction shall be completed in accordance with the design approved by the City, and reviewed by MIT, the 2014 Study, the easement documents and any and all agency approvals and consents. B. Community Space Design and Construction Funding; Initial Funding of Operations. MIT agrees that it shall fund, or cause to be funded, in theaggregate (and as more specifically set forth below), costs and expenses up to $22,000, that are incurred in connection with the design and construction of a community center/space within thepud-7 District (the "Community Space"). MIT will form an advisory committee consisting of representatives from City government, members of adjacent neighborhoods and MIT (the "Community Space Advisory Committee"), which will review and make recommendations to MIT concerning the design and programming of the Community Space and fundraising efforts associated with the operating and
3 iiir Massachusetts InstituteofTechnology programming funds for the Community Space. In connection with the planning and construction ofthe Community Space, MIT agrees to make the following deposits into an escrow fund to be establishedwith an escrow agent mutually satisfactory to MIT and the City Manager: a one-time aggregate amount of$500, for planning and design costs on or before the first anniversary of this letter; additional amounts, as needed from time-to-time, totaling up to $500, in the aggregate to pay for planning and design costs; and a one-time aggregate amount equal to $22,000, less the cost of any planning and design costs paid in connectionwith the community space on or before the date that MIT (or its nominee) acquires title to the majorityof the PUD-7 District, which contribution shall be paid within thirty (30) days ofthe later to occur of(i) the Planning Board issuing its first PUD Final Development Plan Special Permit for a development within the PUD-7 District(and the expiration of any associated appeal period without an appeal being taken) and (ii) MIT's acquisition of the non-government Owned Parcels from the Federal Govenunent. The above amounts, after funding, shall be released from escrow periodically to fund the planning and design and/or construction of the Community Space, as the case may be, pursuant to escrow instructions reasonably agreed to by MIT and the City. In addition, immediately upon the opening of the Community Space to the public, MIT shall contribute $3,500,000 into theabove escrow fund, which shallbe accessible by the operator of the Community Space (either MIT or an operator selected by MIT), in order to provide initial endowment for the provision of operating funds. C. Graduate Student Housing. MIT agrees that it shall create 950 new beds for graduate students (collectively, the "New GSH Beds"), pursuant to the schedule set forth in this letter. To that end, MIT agrees that it shall use diligent efforts to complete, on or before December 31, 2020, the construction of Building4 of MIT's South of Main Street Project in Kendall Square (the construction ofwhich broke ground on October 11, 2017), containing 450 graduate student beds, ofwhich 250 beds will be net New GSH Beds; no later than December 31, 2020, apply for a discretionary permit (or a building permit if no discretionary permits are required) to create at least 500 New GSH Beds; and
4 iiir Massachusetts instrruxe of Technology use diligent efforts, on or before December 31, 2020, to either add, by conversion of existing bedsand/or establishment of new beds, or apply for a discretionary permit (or building permit(s) and/or alteration permit(s), as the case may be, if no discretionary pennit is required) for, or a combination thereof, a minimum of200 New GSH Beds in existing buildings or otherwise located on MIT's campus or properties owned by MIT, which may include the recently converted 133 graduate student beds at 70 Amherst Street. D. Job Connector Space and Program. MIT agrees to include space and programming for a job connector operation within the Community Space, the purpose of which is to connect Cambridge residents with jobs and programs that will allow them to take advantage of Cambridge's innovation economy. MIT agrees, upon the opening of the Community Space, to deposit $1,500,000 in an account established by theoperator of the Community Space to provide funding, andacquire resources, for thejob connector program. MIT will create such program with the advice of and inputfrom City staffand other stakeholders. Within eighteen (18) months of the adoption of the PUD-7 Zoning, MIT will initiate a job connector operation at a location(or locations) to be determined by MIT. MIT will keep such location open and will fund $125,000 annually toward the staffing and operation of the program at such location until such time as the Community Space opens to the public. E. Middle Income Housing. MIT commits to theconstruction of a minimum of twenty (20) Middle Income Units (as defined below) in thepud-7 District, in the aggregate, to be delivered by MIT proportionately with the delivery of residential units within the PUD-7 District or at such earlier time as MITmay determine. For the purposes of this letter, the term "Middle Income Units" shall be defined as residential dwellings units for which (i) the occupancy is restricted to households whose total income is no less than eighty percent (80%) and no more than one hundred twenty percent (120%) of Area Median Income (as defined in the Zoning Ordinance); and (ii) the rent(including utilities) does notexceed thirty percent (30%) of the income of the renting household or such equivalentstandard as may be determined by the Board of Trustees of the Affordable Housing Trust Fund. Middle Income Units shall not be considered Affordable Dwelling Units for the purpose of meeting theinclusionaiy Housing requirements of Section ; however, Middle Income Housing units shallbe administered pursuant to such reasonable policies, regulations, and standards as are established by the City that apply to the administration of all Middle Income Housing units in the City. F. Innovation Housing; Limitations on Residential Parking Permit. A minimum of five percent (5%) of the Dwelling Unit Net Floor Area of minimum housing required by the PUD-7 Zoning shall be devoted to units measuring between three hundred fifty (350) and four hundred fifty (450) square feet in size (the "Residential Innovation Housing Units"). MIT agrees that it shall include or cause to be included a covenant that the unit
5 niii Massachusetts Institute oftechnology tenants shall not apply to the City of Cambridge Traffic, Parking & Transportation Department for a Resident Parking Permit in thirty (30) ofthe residential leases (or other equivalent occupancy agreements) for the Residential Innovation Housing Units constructed within the PUD-7 District. G. Open Space and Retail Advisory Committee. In order to ensure that the adjacent neighborhoods are involved in the programming of activities for the open spaces andthe types of retailers for the retail space in the PUD-7 District, MIT will establish an advisory committee to provide input on the programming of these spaces. The advisory committee shall meetonce annually for a period of 10years. The advisory committee shall include representatives from the Community Development Department, adjacent neighborhoods andthree (3) representatives designated by MIT. To effectuate a vibrant communitybased open space and retail plan, MIT shall create anopen space and retail programming planfor any new commercial building andpresent such plan to the advisory committee six (6) months prior to the substantial completion of that building. MIT may update the programming plan from time to time. H. Community Event Programming. MIT agrees that it shall spend no less than $300,000, in the aggregate, to host community engagement events in or around the PUD-7 District, which events shall be held at such time(s) and location(s) as MIT may determine and shall be open to members of the general public, butshall beheldno less frequently than once per calendar yearand shallcontinue until suchtime as MITacquires landin the PUD-7 District from the United States. I. Real Estate Taxes. Notwithstanding the provisions of any agreement that MIT may have entered into with the City previously, MIT hereby agrees that in the event that it converts any new commercial buildingconstructedpursuant to the PUD-7 Zoning from commercial to exempt institutional use, MIT will remove such property from the tax rolls of the City of Cambridge incrementally over a period of ten (10) years. During the ten (10)year period following the conversion of such a property to institutional use, MIT agrees not to claim an exemption for the percentage of the assessed valueof the property thatwould exceed the following: 10% in year one, 20% in yeartwo, 30% in yearthree, 40% in year four, 50% inyearfive, 60% in year six, 70% in yearseven, 80% in year eight, 90% in yearnine and 95% inyear ten. Commencing in year eleven and for each subsequent year that the ownership and useof such parcel satisfies the requirements for exemption under M.G.L. c. 59, MIT will have the right to claim that 100%of the value of property is exempt from assessment. J. Innovation Arts Program. Within thirty (30) days of MIT obtaining a Permanent Certificate of Occupancy for the first commercial building in the PUD-7 District, it shall establish an art program that includes, but is not limited to, outdoor exhibits and recognitions of innovation and entrepreneurship in the Kendall Square area. Between the date on which MITestablishes the art program and the date that is the tenth(10"') anniversary of the issuance of theabove Permanent Certificate of Occupancy, MIT shall
6 iiir Massachusetts Institute of Technology expend up to $1,000,000, in the aggregate, in connection with the implementation of such art program. Conditions to MIT's Commitments For purposes of clarification, MIT's commitments setforth above are offered if the following conditions (the "Conditions"^ are met: 1. The amendments to the Cambridge Zoning Ordinance set forth in Attachment Aare duly adopted in the form attached hereto as Attachment A, and no challenge to the validity ofthe same shall have been made (orin the event of any challenge, such challenge shall have been finally resolved in favor of such validity). 2. With regard to any coimnitments outstanding asofthe date that MIT applies for PUD and/or Article 19 Special Permits for the Project, MIT shall have received such Special Permits, including, without limitation, PUD Special Permits and Article 19 Special Permits, from the City ofcambridge Planning Board, and such other permits and approvals as may be necessary to allow for the build-out of the Gross Floor Area contemplated byand in accordance with the attached PUD-7 Zoning. In addition tomeeting the requirements and conditions ofany required pennits or approvals for the Project (and the payment ofany and all fees associated with the issuance of such pennits or approvals), MIT is making these payments and providing the other mitigation referenced above to the City in order to provide the City with resources to mitigate any impacts which might result fi*om the Project as a result of the rezoning and any special pennit issued pursuant thereto. [REMAINDEROF PAGE INTENTIONALLY LEFT BLANK]
7 IMif Massachusetts InstituteofTechnology MIT's behalf. As MIT's duly authorized representative, 1 am pleased to make these commitments on Sincerely, MASSACHUSETTS INSTITUTE OF TECHNOLOGY, a Massachusetts non-profit coiporation Name:/ Israel Ruiz Title: Executive Vice President and Treasurer Attachment A: Zoning Petition
8 ATTACHMENT A
DRAFT FOR DISCUSSION AT CITY COUNCIL ON
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